Alternative pension liability disclosure and the effect on credit evaluation: An experiment.

Heibatollah Sami; Bill N. Schwartz

doi:10.2308/bria-9701222527

March 1, 1992Behavioral Research in Accounting

Alternative pension liability disclosure and the effect on credit evaluation: An experiment.

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Key Points

Investigate how different presentations of pension liability data affect credit evaluations.
Evaluated four sets of loan applications based on alternative pension disclosure methods.
Assessed factors including interest rates, maximum loan amounts, and repayment probabilities.
Variations in pension disclosure significantly influenced interest rates and loan amounts offered.
Higher leverage related to increased interest rates and lower maximum loan amounts.

Implication

Experiment evaluates credit implications of alternative pension data in loan applications, suggesting significant impacts on lenders' decisions.

Abstract

Reports on the results of a study in the United States investigating the disclosure effect of alternative pension data presentation. Evaluation of four sets of loan applications; Determination of interest rate, maximum loan amount and probability of repayment; Significance to the degree of leverage, magnitude of pension liability and pension disclosure method.

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Cite This Study

Sami et al. (1992) studied this question.

synapsesocial.com/papers/6a2f98a0a1cfeec490829a1f https://doi.org/10.2308/bria-9701222527

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Alternative pension liability disclosure and the effect on credit evaluation: An experiment.

Key Points

Implication

Abstract

Discussion

Cite This Study

Alternative pension liability disclosure and the effect on credit evaluation: An experiment.

Key Points

Implication

Abstract

Discussion

Cite This Study

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